Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Blue Star Ltd declared its Q1FY12 results which remained much below our
estimates. Net revenue reported a subdued growth of 6.6% at Rs 7,031.8 mn.
EBITDA for the quarter declined by 55% at Rs 275.9 mn with a decline of 530
bps in the EBITDA margins at 3.9%. An increase of huge 278% in the interest
cost further dragged the PAT down by 74% at Rs 97.9mn with a drop of 420
bps in PAT margins at 1.4% during the quarter.
Major Highlights of the Concall
Poor show of Electro mechanical project segment: Increased execution
period of the ongoing projects and the resultant and subsequent
provision for cost overruns on account of increase in raw material cost
have resulted in the lower revenues for the quarter and also loss at EBIT
levels. Net revenues for the segment declined by 8.7% at Rs 3,417 mn
with segment EBIT reporting a loss of Rs 88.7 mn. Also the fixed price
contracts in the order book are adding up to the margin pressure.
Standalone order book stands at Rs 20,990 mn: The standalone order book
as at the end of Q1FY12 stood at Rs 20,990 mn indicating a muted growth
of 6.2% growth. The order book of D.S. Gupta stood at Rs 2250 mn. On
account of deteriorated investment climate and sluggish markets the
order inflow during the quarter has declined by 8%.
Healthy performance by the cooling products division and professional
electronics division: Revenues of the cooling product division reported a
growth of 29.5% at Rs 3,281.4 mn. EBIT of the segment reported an
equally healthy growth of 23.6% at Rs 441.4 mn. Professional electronics
revenues and EBIT reported a growth of 3.2% and 46.1% at Rs 333.4 mn
& Rs 79.7 mn.
Increase in capital employed and the funding for the acquisition results in
increased interest cost: Capital employed increased by 30% for the
project & professional electronics division where as it grew by substantial
73% for the cooling products segment. Also the debt to fund the
acquisition of D.S Gupta has resulted in an increased interest cost which
remained up by 278% at Rs 75.6 mn.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Blue Star Ltd declared its Q1FY12 results which remained much below our
estimates. Net revenue reported a subdued growth of 6.6% at Rs 7,031.8 mn.
EBITDA for the quarter declined by 55% at Rs 275.9 mn with a decline of 530
bps in the EBITDA margins at 3.9%. An increase of huge 278% in the interest
cost further dragged the PAT down by 74% at Rs 97.9mn with a drop of 420
bps in PAT margins at 1.4% during the quarter.
Major Highlights of the Concall
Poor show of Electro mechanical project segment: Increased execution
period of the ongoing projects and the resultant and subsequent
provision for cost overruns on account of increase in raw material cost
have resulted in the lower revenues for the quarter and also loss at EBIT
levels. Net revenues for the segment declined by 8.7% at Rs 3,417 mn
with segment EBIT reporting a loss of Rs 88.7 mn. Also the fixed price
contracts in the order book are adding up to the margin pressure.
Standalone order book stands at Rs 20,990 mn: The standalone order book
as at the end of Q1FY12 stood at Rs 20,990 mn indicating a muted growth
of 6.2% growth. The order book of D.S. Gupta stood at Rs 2250 mn. On
account of deteriorated investment climate and sluggish markets the
order inflow during the quarter has declined by 8%.
Healthy performance by the cooling products division and professional
electronics division: Revenues of the cooling product division reported a
growth of 29.5% at Rs 3,281.4 mn. EBIT of the segment reported an
equally healthy growth of 23.6% at Rs 441.4 mn. Professional electronics
revenues and EBIT reported a growth of 3.2% and 46.1% at Rs 333.4 mn
& Rs 79.7 mn.
Increase in capital employed and the funding for the acquisition results in
increased interest cost: Capital employed increased by 30% for the
project & professional electronics division where as it grew by substantial
73% for the cooling products segment. Also the debt to fund the
acquisition of D.S Gupta has resulted in an increased interest cost which
remained up by 278% at Rs 75.6 mn.
No comments:
Post a Comment